The difference between incremental revenues and incremental cost of exporting in a foreign target market is represented by _________________.
A) domestic versus export pricing
B) profit contribution
C)0
D) market-based pricing

Question

Quizplus · Accepted Answer

Incremental revenues represent the additional revenue generated from exporting to a foreign target market, whereas incremental costs represent the additional costs incurred in exporting to the same market. The difference between the incremental revenues and incremental costs is the profit contribution, which is the amount of profit generated by exporting to the foreign market. Thus, option B is the correct answer. The other options are not directly related to the difference between incremental revenues and incremental costs in exporting.

The Difference Between Incremental Revenues and Incremental Cost of Exporting